Transurban boosts profit at motorists' expense

Transurban bought Sydney's Cross-City Tunnel from out of receivership.

ABC TV

Toll road operator Transurban has enjoyed a surge in profits at the expense of motorists.

Full-year profit at Transurban jumped to $282 million, up 64 per cent when compared to the year before, thanks largely to a lift in toll prices.

Shareholders will receive a dividend of 18 cents a share, partially franked.

The company's full-year financial report shows toll revenue rose 13.1 per cent to $906 million, "driven by traffic and toll price growth across most of the asset portfolio."

The majority of the increase was from the Hills M2 motorway in Sydney, which saw a 35 per cent rise in revenue to $193 million, partly from a rise in traffic volume as upgrade works finished but also from a 19 per cent toll increase.

Melbourne motorists were not spared - the CityLink toll rose 5 per cent over the period, helping revenue rise 8 per cent to $525 million.

During the year the company expanded its hold on Australia's major commuter roads, buying Sydney's Cross City Tunnel - which was in receivership - for $475 million, and Queensland Motorways for in excess of $7 billion.

However, Sydney's M5 motorway underperformed over the period, seeing a 0.7 per cent fall in revenue as motorists avoided the ongoing road widening works.

The transfer of US toll road Pocahontas 895 to the lenders of the project added $103 million to Transurban's bottom line.

Chief executive Scott Charlton says the outlook is positive with construction due to start next year on Sydney's NorthConnex, the completion of express lane projects in the US and a major upgrade of roads in Victoria.

"The business is well positioned for the year ahead and we will continue to focus on driving operational improvements across our networks as well as delivering on our pipeline of enhancement projects," he told shareholders.

However, investors were not overly impressed, sending the company's shares down 0.1 per cent to $7.64 by 12:51pm (AEST).